Moynihan: Our Bonus Pools Are Down Year-Over-Year

The transcript discusses the challenges of compensating high earners in investment banking, focusing on balancing retention and compensation. It highlights Bank of America's bonus pool allocation, team management, and adjustments made to bonus plans. The importance of performance-based pay is emphasized, with some employees earning more or less based on performance, despite overall stock performance.

What is a key challenge in compensating high earners in investment banking?

• Finding new clients

• Balancing retention with financial limits

• Expanding global operations

• Reducing operational costs

How is the bonus pool at Bank of America structured?

• Entirely formulaic

• Entirely discretionary

• A mix of formulaic and discretionary

• Based on seniority

Who plays a crucial role in managing the bonus allocation process?

• The IT department

• The legal department

• The management team

• The marketing team

What was a significant factor affecting the bonus pools at Bank of America?

• Technological advancements

• Increase in client base

• Stock performance

• New government regulations

What is emphasized as important in the final section regarding pay?

• Pay based on location

• Equal pay for all

• Performance-based pay

• Seniority-based pay